India-EU FTA boosts organic trade hopes

Around 2,200 exhibitors from the sustainable food sector are participating, including more than 100 companies from India

Organic food businesses from India and the European Union are upbeat about the recently concluded Free Trade Agreement (FTA) negotiations, saying the pact is set to unlock major trade opportunities and strengthen cooperation in the fast-growing organic sector.

The agreement, announced on January 27 after nearly 20 years of negotiations, is expected to be formally signed and implemented within a year. Industry experts estimate that the FTA could open up nearly USD 60 billion worth of export opportunities for Indian organic producers in the EU market. At the same time, European companies stand to gain access to India’s vast 140-crore consumer base. The pact  elimination and reduction of import duties on hundreds of products to promote bilateral trade.

The positive sentiment is evident at BIOFACH 2026, the world’s leading trade fair for organic food, being held in Nuremberg. Around 2,200 exhibitors from the sustainable food sector are participating, including more than 100 companies from India. India has been named the “Country of the Year,” with the Agricultural and Processed Food Products Export Development Authority (APEDA) leading the country’s participation and showcasing its agricultural heritage and growing reputation as a reliable global supplier. India’s organic exports stood at USD 667 million in 2024-25.

Indian companies, ranging from organic juice and snack manufacturers to grain and herb producers, believe the FTA will help expand their reach across Europe. However, several industry representatives pointed out that certification and compliance issues remain a key challenge. They stressed the need for mutual recognition of standards and simplification of procedures to ensure smoother trade flows.

European firms are equally optimistic. Businesses from Austria, Moldova and other countries expressed strong interest in entering the Indian market, particularly in segments such as organic beverages, essential oils and cosmetic ingredients.

Officials said the Indian government is taking steps to strengthen certification systems and testing laboratories to support exporters and ensure the sector fully benefits from the landmark trade deal.